Recently we’ve been writing about the downside potential in precious metals and the danger for precious metals bulls. The gold miners and silver have led the rout while gold finally cracked support ($1,140-$1,150/oz) last week. That led to a severe selloff across the complex.
Last week we wrote that the precious metals complex had not broken out yet and had more work to do before it could attempt a true breakout. The metals had some more upside and so did the shares. However, the poor performance of the shares this past week could warn of a larger reversal.